'Sejong Housing Prices' Ignite Again as National Assembly Relocation Becomes More Concrete

Rising House Prices Amid Ruling Party's Capital Relocation Proposal
Since July, 84㎡ Units Join the '1 Billion Won Club'... 'Mid-Low Price' Listings Under 600 Million Won Disappear

Sejong Apartment Prices Up 39.57% This Year, Jeonse Rises 43.24%
Daejeon Also Sees 14.4% Concurrent Increase

"Capital Relocation May Take Decades... Excessive Investment Should Be Cautioned"

[Asia Economy Reporter Lee Chun-hee] The ruling Democratic Party's Administrative Capital Completion Promotion Team is reportedly seriously considering a plan to relocate all parliamentary functions to Sejong City, except for the National Assembly plenary hall and the Speaker's office in Yeouido, Seoul. This has sparked signs of renewed excitement in the real estate market around Sejong City. Some voices express concerns that this could further fuel the already soaring housing prices in the Sejong area since July.

According to the real estate brokerage industry around Sejong City on the 10th, the actual transaction prices of 84㎡ (exclusive area) apartments in various locations around Sejong City have recently been exceeding 1 billion KRW. Earlier in July, Kim Tae-nyeon, the floor leader of the Democratic Party, proposed the 'relocation theory' to disperse demand concentrated in the metropolitan area and stabilize housing prices. However, instead of stabilizing the market, it has stirred up the real estate market in specific areas.

The first place in Sejong City where the actual transaction price of an 84㎡ apartment exceeded 1 billion KRW was Saetteum Village Complex 11. Just four days after the relocation theory was proposed, on July 27, it was traded at 1.1 billion KRW, breaking the 1 billion KRW mark for the first time. In August, an apartment of the same size in Eojin-dong's 'The Sharp Lake Park' was traded at 1.05 billion KRW, and on the 18th of last month, 'Gaon Village Complex 10' in Dajeong-dong also joined the '1 billion club' with an actual transaction price of 1.01 billion KRW.

Sejong Saerom-dong Saetteum Village 11 Complex 'The Sharp Hillstate' Exterior View (Photo by Lee Chunhee)

Properties priced below 600 million KRW, considered 'mid-to-low price housing,' have long disappeared from the market. Among apartment complexes in Sejong City (excluding eup and myeon areas), only Jae Village Complex 3 in Jungchon-dong and Garak Village Complex 3 in Goun-dong still have actual transaction prices below 600 million KRW for 84㎡ units. However, the representative of a certified real estate agency in Jungchon-dong said, "Those are old prices," adding, "Currently, there are no homeowners willing to list at those prices, nor buyers expecting to pay that amount." In fact, the last transaction for Jae Village Complex 3 was 580 million KRW in July, and Garak Village Complex 3 has had no transactions since August.

In particular, the market views the National Assembly relocation plan as a catalyst that will further drive up housing prices in Sejong City. A representative from a real estate agency in Saerom-dong said, "It’s like pouring fuel on the already soaring Sejong housing prices," adding, "Since the relocation plan has become more concrete, inquiry calls have been increasing."

According to the weekly apartment price index by the Korea Real Estate Board on this day, housing prices in Sejong have risen 39.57% since the beginning of this year as of June 2. Excluding Daejeon, a neighboring area that showed a cumulative increase of 14.4% due to a rising effect, other cities and provinces have all recorded single-digit growth rates, showing a distinctly different trend. Jeonse (long-term deposit lease) prices have also surged by 43.24%, marking the highest increase nationwide. This is in stark contrast to the cumulative declines of 3.68% and 5.13% respectively during the same period last year.

The problem is that the factors driving Sejong's housing price increase are not limited to this alone. In the early stages of Sejong Happy City development, many public officials commuted from surrounding areas like Daejeon due to insufficient residential infrastructure. However, with infrastructure steadily improving, such as the opening of Sejong Chungnam National University Hospital in July, demand from areas like Daejeon and Cheongju is now also flowing into Sejong City.

According to the Ministry of the Interior and Safety, the population residing in Sejong was 349,894 last month. Since Sejong City was launched in July 2012 with a population of 102,267, it has more than tripled.

However, there are also voices cautioning against excessive price surges. The representative of a real estate agency in Dajeong-dong said, "Prices are already too high," adding, "Considering that urban development is almost complete and that the relocation itself could take decades, excessive investment should be approached with caution."

This content was produced with the assistance of AI translation services.